Stockton bankruptcy is hard hit for city retirees

Stockton bankruptcy is hard hit for city retirees

Guillermo and Betty Garcia stand in their downtown Stockton clock and jewelry shop on Wednesday, June 27, 2012. Garcia said the Stockton bankruptcy will have a trickle effect on residents and business owners, including a rise in crime and more businesses going belly up.

Gosia Wozniacka/Associated Press

Stockton bankruptcy is hard hit for city retirees

Pedestrians cross a street near the Bank of Stockton on Wednesday, June 27, 2012, in Stockton. When Stockton becomes the largest U.S. city ever to file for bankruptcy, it will strike a hard blow to residents, especially city employees and retirees whose health benefits and pensions helped drive the city toward insolvency.